Provided the following information: Sales =$1,440,000, Cost of Goods Sold= $1,100,000, Inventory=$200,000, Receivables=$160,000, Payables=S100,000 and there are 365 days in a year. What is the cash conversion cycle for the firm?   a. 113.55 Days   b. 77.05 Days    c. 150.05 Days    d. 73 Days   e. None of the above

Q: $500 $500 $500 $500 Year 2 3 i =12% compunded annually B P=?

A: Let CFn be the cashflow in year n. CF1 = B = - $1200 CF2 = $500 CF3 = $500 CF4 = $500 CF5 = $500 i =…

Q: At a rate of 10.0%, what is the future value of the following cash flow stream? Years: 1 4 CFs: $0…

A: Future value is the future worth of cash flows that has occurred in the past or present.

Q: Consider the following cash flows: Year Cash Flow 0 -$ 29,500 1 14,200 2 3 14,700 11,100 a. What is…

A: Calculate the profitability index for each part using Excel as follows:Formula sheet:Notes:To…

Q: ML has the following data. What is the firm's cash conversion cycle? Inventory conversion period =…

A: The cash conversion cycle can be calculated by adding up the inventory conversion period, average…

Q: What is the NPV of the following cash flows if the required rate of return is 0.13? Year 0 1 2 3 4…

A: NPV offers a clear indicator of an investment's anticipated profitability. An expected net present…

Q: What is the NPV of the following cash flows if the required rate of return is 0.09? Year        0…

A: Here, Year Cash Flows (CF) Discount rate 0 -4529.00 0.09 1 2431.00 0.09 2 572.00 0.09 3…

Q: nmoo Company's average age of accounts receivable is 89 days, the average age of accounts payable is…

A: The cash conversion cycle (CCC) is a financial metric that measures the time it takes for a company…

Q: What is the payback period for the following set of cash flows? (Do not round intermediate…

A: The traditional method that shows the time period in which the cost of investment will be fully…

Q: Consider the following cash flows: Year Cash Flow 0 –$ 34,000 1 13,600 2…

A: Year Cash flow 0 -34000 1 13600 2 18100 3 11000

Q: n.com Connect (i) Consider the following cash flows: Year Cash Flow 0 -$29,600 1 14,100 2 14,800 3…

A: Profitability index is a capital budgeting technique used for making investment decisions.It is…

Q: Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series 0 1 2…

A: Yearly compounding means that interest is paid on the bond yearly. It means only once a year. Also,…

Q: a. In what year will there be no payment? b. What is the present worth of all payment? c. What is…

A: Present worth of the payments is the present value when all the payments which are made during the…

Q: Consider the following cash flows:   Year Cash Flow 0   –$ 32,500    1     14,300    2     17,400…

A: IRR is the rate at which NPV of the project is Zero. Using excel IRR function =IRR(cashflows)

Q: A company is planning to expand its business is costing OMR 19252. The following cash inflows are…

A: Profitability index can be calculated by dividing the present worth of future cash flows and the…

Q: Consider the cash flows shown. Year Revenues, $ Costs, $ 0 0 -6,000 1 2 25,000 19,000 -30,000 -7,000…

A: MIRR stands for Modified Internal Rate of Return. It is a financial metric that is used to measure…

Q: Given: Cash transactions as shown in cash flow diagram. %24 g = 4%/yr (positive transactions…

A: Present value from future value concept is used to calculate the present value of net cash flows.

Q: Consider the following cash flow: Year Cash Flow -$ 29,800 13,900 15,000 11,400 1 2 3 a). What is…

A: Calculation of profitability index: Answer: Profitability index at 9% rate is 1.15 Profitability…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.